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Afghani loses 7pc value against dollar since March

Afghani loses 7pc value against dollar since March

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On
May 21, 2019 - 18:18

KABULinfo-icon (Pajhwok): The afghani lost its seven percent value against the US currency since the beginning of the new solar yearinfo-icon as a result of the smuggling of dollars to Iran and Pakistaninfo-icon and a number of other reasons.

According to Sara-i-Shahzada, a main currency market in Kabul, one dollar consumed 75.6 afghanis in late March while today one dollar is traded at 80.60 afghanis.

Haji Dad Gul, deputy head of the Money Exchangers Union, told Pajhwok Afghan News the recent depreciation of afghani against dollar has two internal and externalinfo-icon factors.

“Over the past few months, the currencies of our neighboring countries have been in bad condition which has a direct impact on the afghani because the two countries (Pakistan and Iran) purchase dollars on a large scale from Afghanistaninfo-icon thus dollars have been going out of Afghanistan,” he said while explaining the external factory of afghani depreciation.

Two months back, one dollar was traded for 135 Pakistani rupees while today one dollar is traded against 150 Pakistani rupees.

In addition, in March, one dollar was accounted for 13,500 Iranian Tomans while today one dollar cost 15,000 Tomans.

Dad Gul said in western provinces the Iranian currency was openly used while in southern and eastern provinces, the Pakistani rupee was used for purchasing goods and services.

Apart from external factors, worsening political situation and economic uncertainty at home are other reasons which play a role in the depreciation of the afghani.

University teacher Taj Mohammad Akbar said besides factors such as decline in foreign aid, export, import imbalance, economic problems, worsening security and political situation, recently Iran and Pakistan started smuggling dollars from Afghanistan in order to strengthen their own currencies.

He suggested the government should encourage investment, work on infrastructure projects and prevent the smuggling of dollars from the country.

Emal Hashour, spokesman for the Central Bank, said besides security and economic problems, the depreciation of afghanis was linked to devaluation of currencies in neighboring countries because Afghanistan imported huge goods from them purchased in dollars.

He said Pakistan was Afghanistan’s huge trading partner and Afghanistan annually imported goods worth $6 billion from both countries.

When asked why the government cannot stop the flow of dollars to neighbouring countries, he said Afghanistan imported goods from the two countries, therefore the flow of dollars to them could not be stopped.

nh/ma

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